NeurAxis (NRXS): A Steal at Current Market Price

I've been quietly watching NeurAxis (NRXS) develop its IB-Stim therapy for pediatric gastrointestinal disorders, and we're approaching an inflection point that could deliver exceptional returns for early investors. This company has a massive addressable market, a differentiated FDA-cleared product, and a focused go-to-market strategy targeting a concentrated customer base.

The complete analysis follows, but here is my thesis: NeurAxis is well-positioned to capture a meaningful share of a $7-9 billion market with limited competition, strong clinical backing, and compelling economics for both patients and insurers.

The Market Opportunity is Enormous

Let's start with the numbers that matter. NeurAxis targets pediatric patients (ages 8-21) suffering from Irritable Bowel Syndrome (IBS) and Functional Dyspepsia (FD) - conditions that affect 6% to 14% of the 55-60 million Americans in this age range. But we're not talking about mild discomfort here.

The addressable patient population breaks down as follows:

• IBS/Functional Abdominal Pain: 5 to 6 million symptomatic individuals, with 300,000 to 600,000 severe enough to warrant IB-Stim treatment

• Functional Dyspepsia: 1.5 to 2.0 million symptomatic individuals

In total, approximately 2 million U.S. youths have severe symptoms that could benefit from IB-Stim therapy. At $4,800 per treatment course (four devices at $1,200 each), this represents a Total Addressable Market of $7.2-9.6 billion.

Even more compelling is the annual incidence: approximately 200,000 new cases per year, representing a $960 million yearly opportunity from new patients alone. This is a market with both a massive installed base and consistent new patient flow.

A Concentrated, Manageable Market

What I love about NeurAxis's opportunity is its concentrated nature in terms of the target market. Unlike companies that need to educate thousands of physicians across hundreds of specialties, NeurAxis has a laser focus:

• Primary Target: 200 freestanding children's hospitals

• Extended Market: 3,297 total children's hospitals (including pediatric units)

• Key Physicians: 3,928 pediatric gastroenterologists

This is a manageable universe for a focused sales effort. Every marketing dollar can be precisely targeted, and the company can build deep relationships with key opinion leaders who influence adoption across multiple institutions.

Today, Neuraxis has a sales staff of six. They believe that with twenty dedicated sales personnel, they could adequately cover the above physician and hospital universe.

Product Differentiation and Clinical Validation

IB-Stim isn't just another medical device - it's a paradigm shift in treating pediatric GI disorders. The therapy uses non-invasive neuromodulation through a small device worn behind the ear for five consecutive days per week over 4-6 weeks.

The clinical results are impressive: